Rockebakker Sports Inc (RSI) is considering developing new elliptical trainers. RSI's sales prognosis is 4,500 units per year for the next 5 years (after which time this project is expected to shut down). The elliptical trainers would sell for $1,300 each with variable costs of $575 for each one produced, and annual fixed costs associated with production would be $900,000. In addition, there would be a $4,000,000 initial expenditure associated with the purchase of new production equipment. It is assumed that this initial expenditure will be depreciated using the straight-line method down to zero over 5 years. This project will also require a one-time initial investment of $700,000 in net working capital associated with inventory, and it is assumed that this working capital investment will be fully recovered when the project is shut down. Finally, assume that the firm's tax rate is 33 percent. a. What is the initial free cash flow for this project (at time 0)? b. What are the annual free cash flows associated with this project for years 1 through 4? c. What is the terminal free cash flow in year 5 (that is, the free cash flow in year 5 plus any additional cash flows associated with termination of the project)? d. What is the project's NPV given a required rate of return of 7 percent? a. The initial free cash flow for this project is $. (Round to the nearest dollar.) b. The annual free cash flows associated with this project for years 1 through 4 are $ (Round to the nearest dollar.) (Round c. The terminal free cash flow in year 5 (that is, the free cash flow in year 5 plus any additional cash flows associated with termination of the project) is $ to the nearest dollar.) d. Given a required rate of return of 7%, the project's NPV is $ (Round to the nearest dollar.)